New California laws in effect for 2025

Cannabis cafes and expanded outdoor drinking? An end to a banking fee? More protections for your credit score if you face medical debt? These are among the roughly 1,000 new laws hitting California starting the first day of 2025.

There are consumer finance protection laws as well as a law banning local voter ID rules and another granting a few more days to fight an eviction. Paris Hilton makes a cameo, too.

New laws affecting education will protect the privacy of LGBTQ+ students, ensure that the history of Native Americans is accurately taught and make it more difficult to discriminate against people of color based on their hairstyles.

California lawmakers introduced nearly 5,000 bills in the most recent legislative session ending this fall, a two-year period that saw nearly half die without a single vote. In all, lawmakers passed about 1,200 bills in 2024 and Gov. Gavin Newsom vetoed 200 of those. And that’s the bureaucratic funnel in a nutshell. 

Most of these incoming laws are technical, fix previous laws or are narrow in scope. But there are some that affect lots of Californians, or are just plain interesting. 

Cannabis cafes and entertainment zones

Two new laws that aim to increase central city foot traffic, which has yet to fully recover from the COVID-19 pandemic. 

Senate Bill 969, authored by state Sen. Scott Weiner, will let local governments designate “entertainment zones,” where bars and restaurants can sell alcoholic beverages for people to drink on public streets and sidewalks. 

Some organizations, such as the California Alcohol Policy Alliance, oppose SB 969 because it could contribute to drunk driving accidents and increased alcohol mortality rates. 

AB 1775 legalizes Amsterdam-style cannabis cafes, allowing lounges to also sell food and drinks that aren’t pre-packaged. After opposition from the American Heart and Lung Association and Newsom’s veto of a similar bill in 2022, AB 1775 includes additional protections for workers against secondhand smoke. 

“Lots of people want to enjoy legal cannabis in the company of others,” bill author Assemblymember Matt Haney, also a San Francisco Democrat, said in a statement. “And many people want to do that while sipping coffee, eating a sandwich, or listening to music.”

Bosses can’t require attendance at anti-union meetings

California employers won’t be able to require workers to attend any meetings related to their political or religious views — or how their bosses feel about unions. 

That’s according to a new law, Senate Bill 399, that is one of the most prominent of the usual wave of new workplace laws businesses are expected to follow each year. 

The law bans mandatory workplace meetings in which the employer discusses their “opinion about religious or political matters,” the latter of which is defined to include the decision on whether to join a union. Workers cannot be disciplined for refusing to attend such a meeting under SB 399. 

The new law’s proponents, including the California Labor Federation, say such meetings can intimidate workers out of exercising their right to unionize, though retaliation from employers is already illegal. 

Business groups such as the California Chamber of Commerce opposed the new law, arguing it would infringe on employers’ right to free speech and ability to discuss the effects of laws or regulation on their industries. The law includes exceptions for employees, such as those working for political parties, whose job includes talking about politics.

Other new employment laws that go into effect Jan. 1 include:

An increase to the minimum wage, from $16 an hour to $16.50. Voters in November defeated an effort to further increase the wage to $18, but current law automatically adjusts the minimum wage during inflationary periods.  Employers will also be required to allow workers to use their time off more flexibly. Under AB 2123, they can no longer force employees to use as much as two weeks of vacation time before taking paid family leave, the state program that gives workers some benefits for taking time off to care for a newborn child or sick family member.  And under AB 2499 workers can use sick time to perform jury duty. That new law also expands the reasons workers can take unpaid, protected leave when they are victims of crime. 

Schools can’t require parental notification of child’s gender preference

Assembly Bill 1955, signed by Gov. Gavin Newsom in July, forbids California school boards from passing resolutions that require school staff, including teachers, to notify parents if they believe a child is transgender.

The Support Academic Futures and Educators for Today’s Youth, or SAFETY Act, also protects school staff from retaliation if they refuse to notify parents of a child’s gender preference. The legislation, which goes into effect on Jan. 1, also provides additional resources and support for LGBTQ+ students at junior high and high schools.

The legislation was created in response to the more than a dozen California school boards that proposed or passed parental notification policies in just over a year. The policies require school staff to inform parents if a child asks to use a name or pronoun different from the one assigned at birth, or if they engage in activities and use facilities designed for the opposite sex.

“Politically motivated attacks on the rights, safety and dignity of transgender, nonbinary and other LGBTQ+ youth are on the rise nationwide, including in California,” said Assemblymember Chris Ward, D-San Diego, author of the bill, in a media release. “While some school districts have adopted policies to forcibly out students, the SAFETY Act ensures that discussions about gender identity remain a private matter within the family.”

Opponents of the bill, including Assemblymember Bill Essayli, R-Riverside, indicated that the issue will be settled in court. 

Accurate Native American history

Building a Spanish mission — out of Popsicle sticks or sugar cubes — was once a common assignment for fourth-grade students in California. The state curriculum framework adopted in 2016 says this “offensive” assignment doesn’t help students understand this era, particularly the experiences of Indigenous Californians subject to forced labor and deadly diseases from Spanish colonizers.

But supporters of a new law that goes into effect on Jan. 1 say that there are still grave concerns that the history of California Native Americans — including enslavement, starvation, illness and violence — is still misleading or completely absent from the curriculum.

AB 1821, authored by Assemblymember James Ramos, D-San Bernardino, aims to address this. When California next updates its history-social science curriculum — on or after Jan. 1 —  it asks that the Instruction Quality Commission consult with California tribes to develop a curriculum including the treatment and perspectives of Native Americans during the Spanish colonization and the Gold Rush eras.

“The mission era of Spanish occupation was one of the most devastating and sensitive periods in the history of California’s native peoples and the lasting impact of that period is lost in the current curriculum,” according to a statement from the San Manuel Band of Mission Indians, one of the supporters of the legislation.

Teaching about desegregation in California

Another law that also goes into effect this year also requires the state to update its history-social science curriculum. AB 1805 requires that the landmark case Mendez v. Westminster School District of Orange County be incorporated into the history social-science curriculum updated on or after Jan. 1.

The case, brought in 1945, challenged four districts in Orange County that segregated students. The plaintiffs in the case were Mexican-American parents whose children were refused admission to local public schools. The case led to California becoming the first state to ban public school segregation — and it set a precedent for Brown v. Board of Education, which banned racial segregation in public schools.

The Mendez case is referenced in the history-social science curriculum that was last adopted in 2016 for fourth- and 11th-grade students, as well as the Ethnic Studies Model Curriculum, as an example of inter-ethnic bridge-building.

The Westminster School District wrote a statement in support of the law to ensure that the case is “properly recognized and rightfully incorporated into the state’s education curriculum.”

Protecting against hair discrimination

Assembly Bill 1815 makes it more difficult to discriminate against people of color, including students, based on their hairstyle. Although this type of discrimination is already prohibited by the CROWN Act, it has not extended to amateur and club sports.

The new legislation also clarifies language in the California Code, eliminating the requirement that a trait be “historically” associated with a race, as opposed to culturally, in order to be protected. 

“(This bill) addresses an often-overlooked form of racial discrimination that affects our youth — bias based on hair texture and protective hairstyles, such as braids, locks, and twists,” stated a letter of support from the ACLU. “By extending anti-discrimination protections within amateur sports organizations, this bill acknowledges and seeks to dismantle the deep-rooted prejudices that impact children and adolescents of color in their sports activities and beyond.”

Protection for child content creators

Newsom signed two pieces of legislation in September that offer additional protection to children who star in or create online content.

The new laws expand state laws that were meant to protect child performers.  Senate Bill 764 and Assembly Bill 1880 require that at least 15% of the money earned by children who create, post or share online content, including vloggers, podcasters, social media influencers and streamers, be put in a trust they can access when they reach adulthood.

“A lot has changed since Hollywood’s early days, but here in California, our laser focus on protecting kids from exploitation remains the same,” Newsom said in a statement. “In old Hollywood, child actors were exploited. In 2024, it’s now child influencers. Today, that modern exploitation ends through two new laws to protect young influencers on TikTok, Instagram, YouTube, and other social media platforms.”

Expanded alcohol education in schools

California public school students will get additional coursework on the harms of alcohol in 2025, thanks to a new law from a former lawmaker whose drunken driving arrest inspired her legislation.

In September, Gov. Gavin Newsom signed Assembly Bill 2865 by former Los Angeles Democratic Assemblymember Wendy Carrillo, whose DUI last year helped derail her political career. 

California schools are already required to provide instruction about alcohol, narcotics and other dangerous drugs. This bill would require that schools also provide instruction about the short- and long-term harms of excessive drinking — including alcohol’s link to chronic diseases, mental health problems and deaths.

Under the new law, school boards can decide which grades receive the new instruction. They can ask the state for reimbursements for the costs of instruction, training and updates to instructional materials, said Nicholas Filipas, a spokesperson for the California Department of Education. 

More transparency for residential treatment centers for children

hundreds of state-licensed residential treatment centers for children and youth up to age 21 operating in California must comply with a new law that brings greater transparency — particularly when they use restraints and seclusion rooms. 

After restraining a youth, or putting them in a seclusion room, the facility is required to provide a report to both the youth and to their parent or guardian. The report must include a description of the incident; which staff members were involved; the rationale behind their actions; how long the incident lasted; and other details.

A copy of the report must be provided to the California Department of Social Services within seven days. The department is required to review reported incidents for any health and safety violations and, if needed, investigate the incident.

Another provision of the law, requiring the department to make data about these incidents publicly available on its website, doesn’t take effect until Jan. 1, 2026. Then, parents or guardians weighing the difficult decision to send their children to these facilities can access information about any potential misuse of restraints and seclusion rooms. 

One of the most widely-recognized champions of the bipartisan measure as it advanced through the Legislature was Paris Hilton. In April, the hotel heiress, socialite and media personality visited the state Capitol to advocate on behalf of the legislation, and recount the physical and emotional abuse she experienced while living at youth treatment centers in California and other states. 

Tenants facing evictions will have more time to fight to keep their homes

Tenant advocates suffered a big defeat this fall when California voters decided against expanding cities’ ability to limit rent increases. But a state law set to take effect Jan. 1 will give renters facing eviction a little more breathing room.

The law doubles the time tenants have to respond after receiving an eviction notice from five business days to ten. Lawyers who work with renters say that what may seem like a minor procedural change could make a big difference in allowing people to stay in their homes. 

Tenants who are served an eviction notice and don’t respond in writing within the legal timeframe can lose their case by default, potentially incurring financial penalties and a black mark on their record that affects their future ability to obtain housing. That’s true even if a tenant has a valid legal defense – for example, if their landlord increased the rent above state limits or refused to fix problems like lack of heat or broken door locks. About 40% of California tenants lose their cases this way, researchers have estimated.

“Five days has never been enough for a tenant to find legal assistance and try to decipher the complaint filed against them, find out what kind of defenses they have, fill out the paperwork and make it to court,” Lorraine López, a senior attorney with the Western Center on Law and Poverty, told CalMatters earlier this fall.

Authored by Assemblymember Ash Kalra, a San Jose Democrat, the new law also offers something for landlords, who generally like eviction cases to move faster. It limits the amount of time tenant lawyers can take to file certain motions alleging errors in a landlord’s complaint. Landlord representatives said lawyers would use those motions to drag out cases unnecessarily.

The change convinced the state’s largest landlord lobby, the California Apartment Association, to remain neutral on the law while legislators debated it. Some local property owner groups still opposed the law.

“The longer these things take, the more expensive it is (for landlords) and the more rent is lost,” said Daniel Bornstein, an attorney who represents property owners.

Fines blocked for declined ATM withdrawals

Californians who try to withdraw money but don’t have enough in their bank accounts won’t fall deeper into a financial hole from having to pay a fine, thanks to a new state law.

The law covers instances in which banks charge customers when their withdrawals are declined instantaneously, such as at ATMs, because of insufficient funds.

Assembly Bill 2017 applies to banks and credit unions that are regulated by the state; Gov. Gavin Newsom signed it in September. The bill was backed by several consumer advocacy groups, including the California Low-Income Consumer Coalition and East Bay Community Law Center, which called penalties for insufficient funds “junk fees” and said getting rid of them will protect financially vulnerable consumers. 

In line with the growing nationwide push to eliminate junk fees, Newsom also signed another bill addressing overdraft fees: Senate Bill 1075 will limit credit-union fees for insufficient funds to $14 unless a lower federal limit is set. That becomes law in 2026. And he signed Assembly Bill 2863, which will make it easier for consumers to cancel subscriptions and requires companies to get consent from their customers before charging them to renew or when a free trial ends. It goes into effect July 1.

Most medical debt can’t hurt your credit score anymore

A new state law prohibits health providers and debt collectors from reporting medical debt information to credit agencies. That means unpaid medical bills should no longer show up on people’s credit reports, which consumer advocacy groups say is a boon for patients with debt.

Here’s why: While the law will not forgive someone’s debt, by keeping it off credit reports, it might provide some reassurance that a hospital stay or trip to urgent care won’t later affect their credit standing. Lower credit scores usually result in higher interest rates and make it harder for people to qualify for a home rental, a car loan or even employment.

The main three credit bureaus – TransUnion, Equifax and Experian — stopped reporting medical debt under $500 in 2023. But most people with medical debt owe far more than that. The national average for medical balance is $3,100, according to the Consumer Financial Protection Bureau. In California, an estimated 38% of residents carry some type of medical debt; that figure climbs to more than half for low-income residents, according to the California Health Care Foundation. 

One key caveat is that patients can only take advantage of this law if the debt is owed directly to a medical provider or collection agency, but not when the debt is charged on a medical credit card or a general credit card. 

Voter ID ban puts conservative cities at odds with state

California has become the latest battleground over voter identification requirements, a longtime conservative priority newly propelled in recent years by election fraud complaints from President-elect Donald Trump.

Under a state law that took effect on Jan. 1, local governments across California are prohibited from compelling voters to present identification to cast a ballot in an election.

But Huntington Beach is fighting back. (Read more on CalMatters.)

Car buyers have fewer protections

Californians who purchase a clunker car in 2025 face a confusing year as new lemon law rules take effect and the state Supreme Court limited warranty protections for used vehicles. Lawmakers are revisiting the rules, but consumers could see weaker protections until new laws are passed. (Read more on CalMatters.)

California stiffened penalties for theft — and more changes are coming

New California laws taking effect Jan. 1 aim to make it easier to prosecute people accused of retail theft. Separately, voters passed Prop. 36 to toughen sentences for theft and drug offenses. (Read more on CalMatters.)

Penalties increased for attacks on emergency workers

A new California law imposes harsher penalties for assaulting emergency room workers. It responds to rising attacks on health care workers, despite concerns from progressives and prison-reform advocates. (Read more on CalMatters.)

This story was written by EdSource’s Diana Lambert and Emma Gallegos and CalMatters’ Jeanne Kuang, Lynn La, Ryan Sabalow, Felicia Mello, Carolyn Jones, Alexei Koseff, Levi Sumagaysay, Ana B. Ibarra and Cayla Mihalovich.

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Featured photo: Adriana Heldiz, CalMatters